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Mnuchin sees $1 trillion revenue growth from U.S. tax overhaul

WASHINGTON (Reuters) – U.S. Treasury Secretary Steven Mnuchin said on Friday that he believes the Republican tax cuts will ultimately become revenue neutral over 10 years due to higher growth, but the Treasury will likely ask Congress for more money to implement the plan.

“We think there will be over $1 trillion in growth, so I do think this will pay for itself,” Mnuchin told an event hosted by the Economic Club of Washington, dismissing estimates from the Joint Committee on Taxation that the tax cuts will increase U.S. deficits by $1.1 trillion to $1.5 trillion over 10 years.

Mnuchin said that for modeling purposes, the plan assumes 2.9 percent annual U.S. growth, but “we do think we can get to three percent or higher.”

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